Purpose: This study examines the research question, “Why does the A-Tail-Wags-the-Dog phenomenon occur following the success of international joint ventures （IJVs）?” The case study considers the IJVs between Nippon Paint （NP）, a leading Japanese paint company and Wuthelam Holdings （Wuthelam）, a Singaporean entrepreneurial firm. The first IJV was established in 1962 in Singapore and later expanded throughout Southeast Asia and China.

Design/methodology/approach: The changes in the power situation between partners over 50 years are qualitatively analyzed through the “Resource Dependence Perspective” （Pfeffer and Salancik, 1978; 2003） and the subsequent effects of their ex-ante conditions.

Findings: Notably, NP, a 40%-owned minority shareholder, provided resources including manufacturing and quality-control technologies, R&D, brands and raw materials for paint exports to the IJVs. Wuthelam, a 60%-owned parent, was responsible for the management, production, marketing, sales and financing. Through these interdependent relationships, the IJVs grew to attain the No.1 market share by the early 2000s in both markets, owing to Wuthelam’s competent management. In 2006, NP initiated negotiations with Wuthelam to consolidate all IJVs, and concluded by acquiring additional 11% shares of only eight IJVs in 2014. Consequently, NP became a 51%-owned parent of these eight IJVs by allotting nearly 40% of its common stocks to Wuthelam through a stock swap scheme; making Wuthelam the controlling shareholder of NP. Subsequently, to prevent future attempts to unseat Wuthelam, as in 2017, Wuthelam exerted legitimate power to become a 60%-owned parent of NP by exchanging all the remaining shares of all IJVs that it owned for an additional 20% of NP common stocks in 2020.

Originality: The relationship between the IJV partners evolved into “A-Tail-Wags-the-Dog” rare in the history of Japanese companies.